India’s economy is poised to grow at a healthy 6.5% in FY26, withstanding global geopolitical challenges, according to Sanjiv Puri, President of the Confederation of Indian Industry (CII).
In an interview with PTI, Puri highlighted the resilience of the Indian economy, crediting a strong macroeconomic foundation, improving private investment, and easing inflation as key growth enablers.
“We are looking at 6.5%. This number is achievable, fundamentally because we’re starting from a position of strength,” said Puri.
Growth Drivers: Investment, Reforms & Resilience
Private investment is gaining traction across core sectors such as energy, transportation, metals, chemicals, and hospitality, signaling growing economic confidence. Puri noted that despite geopolitical uncertainties, the investment environment remains optimistic, though some caution may persist.
Several recent policy moves are also contributing to momentum:
- Lower interest rates
- Easing inflation
- Personal income tax concessions effective from April 1
- Robust public sector investment in the latter half of FY25
Trade in a Fragmenting World :
Addressing rising global protectionism and proposed tariff hikes by key economies like the US, Puri emphasized the urgency of bilateral trade pacts with strategic partners such as the US and EU.
“We must engage in trade agreements mutually beneficial and aligned with national interest,” he stated, advocating for a three-tier tariff structure to improve competitiveness in select sectors.
Focus on Domestic Strengths
Puri also stressed the importance of accelerating reforms in agriculture, climate adaptation, and domestic productivity to sustain long-term growth.
He pointed out encouraging signs from the rural economy, noting that while urban consumption has remained flat, it is expected to rebound in the coming quarters.
“The domestic drivers of growth must be our priority. They can buffer the economy against external volatility,” Puri said, adding that further interest rate cuts could further support growth.
S&P Global: India’s Manufacturing Sector Attracting Rising Global Investment
A new study by S&P Global titled “India Forward: Transformative Perspectives” highlights India’s rising appeal as a global manufacturing hub. As international trade dynamics shift, India is emerging as a key beneficiary. Here’s what the report reveals:
Key Highlights :
- Strategic Momentum: India is well-positioned to capitalize on global trade realignments and tariff shifts, fueling accelerated growth in manufacturing.
- Supply Chain Advantage:
- Shift towards local sourcing and regional integration is boosting India’s attractiveness.
- India stands to gain fromsupply-chain diversification as companies reduce reliance on traditional manufacturing bases.
- Investor Magnet:
- Global investors are increasingly viewing India as a competitive and resilient manufacturing destination.
- The focus on technology advancement and high-quality job creation is drawing interest.
- Policy Push:
- Targeted government interventions are helping build domestic manufacturing capacity.
- These efforts are aimed at strengthening India's role in global supply chains.
- Economic Resilience:
- Despite a slowdown in FY25 real GDP growth, India remains the world’s fastest-growing large economy.
- Its moderate dependence on external trade offers some insulation from global volatility.
- Current Performance:
- Manufacturing contributes 18.2% to India’s real GDP.
- High-frequency HSBC PMI data indicates India's manufacturing sector is resilient compared to global peers.
With a blend of policy reform, strategic location, and strong fundamentals, India is steadily becoming a preferred destination for global manufacturing investment. The road ahead looks promising for deeper integration into global value chains.
India Gears Up for Global EV Leadership with Bold Vision and Rapid Growth
India is shifting gears towards a cleaner, greener future, setting the stage to become a global leader in electric vehicles (EVs). With one of the world’s largest automotive markets and a fast-growing population, India is driving innovation and investment in EV technology at an unprecedented pace.
The nation’s EV market is on a high-voltage growth track—expected to surge from ₹27,417 crore (US$ 3.21 billion) in 2022 to a staggering ₹9,73,589 crore (US$ 113.99 billion) by 2029. Former NITI Aayog CEO and G20 Sherpa, Mr. Amitabh Kant, emphasized the urgency of transitioning to sustainable mobility, warning that delay could cost India its shot at becoming the world’s top EV manufacturer.
By 2030, India aims to have:
- 30% EV market penetration
- 80 million EVs on the road
- A booming EV battery market worth ₹2,36,586 crore (US$ 27.70 billion)
Government initiatives like the PM E-Drive scheme are accelerating progress by offering incentives, infrastructure development, and industry partnerships. The government’s ‘7C Vision’ – Common, Connected, Convenient, Congestion-free, Charged, Clean, and Cutting-edge – is paving the way for affordable financing and a robust charging ecosystem.
Key Highlights: India’s EV Revolution
- Explosive Market Growth:
From ₹27,417 crore (2022) to ₹9,73,589 crore (2029) – a 35x increase in market value.
- Ambitious National Target:
80 million EVs on Indian roads by 2030 with a 30% share in overall vehicle sales.
- Battery Market Surge:
Projected to grow from ₹1,43,233 crore (2023) to ₹2,36,586 crore (2028).
- Policy & Infrastructure Push:
PM E-Drive scheme, state incentives, and industry-government collaboration are accelerating EV adoption.
- Charging Network Expansion:
Over 12,000 public charging stations in operation; 1.32 million needed by 2030.
- 7C Vision for EV Mobility:
A strategic framework promoting sustainability, convenience, and innovation.
- Industry Leaders in Action:
Tata Motors, Mahindra & Mahindra lead the charge, with strong support from JSW and Reliance Infrastructure.
- Future Projections (S&P Global Mobility):
EV penetration to hit 19% by 2030 and 32% by 2035.
- Collaborative Ecosystem:
Joint efforts in local manufacturing, battery R&D, and skill development are essential for long-term success.
With strong policy support, industry commitment, and an innovation-driven mindset, India is well on its way to becoming a global powerhouse in electric mobility—clean, connected, and future-ready.
UN Report: India Defies Global Slowdown with Robust 6.3% Growth in 2025
Despite a slight downward revision, India continues to hold its ground as one of the fastest-growing large economies in the world, according to the United Nations’ latest ‘World Economic Situation and Prospects: Mid-2025’ report released on Thursday.
The UN has scaled down India’s GDP growth forecast for 2025 to 6.3%, a dip from its earlier 7.1% projection for 2024. But the tone of the report remains optimistic — India’s growth story is far from losing steam.
“India remains one of the fastest-growing large economies, driven by strong private consumption and public investment, even as growth projections have been lowered,” said Ingo Pitterle, Senior Economic Affairs Officer at the UN DESA, during a press briefing.
What’s Fueling India’s Momentum?
India’s resilience is backed by robust domestic demand, aggressive government capital expenditure, and a thriving services sector, especially in IT and finance. These pillars are helping India power through a global environment riddled with uncertainty, from trade tensions and tariff wars to inflation and geopolitical shifts.
According to the report, while global supply chains are under pressure and many economies are slowing, India’s economy is defying the odds thanks to:
- Strong private consumption – especially in urban and semi-urban markets
- Continued public infrastructure investment – creating jobs and boosting demand
- Export growth in services – particularly tech-driven sectors
Long-Term Positives
India’s young population, digital innovation ecosystem, and ongoing policy reforms in manufacturing and infrastructure are cited as long-term strengths. The report sees these factors helping the country maintain a stable and upward economic trajectory, even as global headwinds persist.
The Big Picture
In a year when many economies are tightening belts, India is still expanding its footprint. While the 6.3% forecast is lower than earlier expectations, it still positions the country as a standout performer on the global economic stage.
India’s Exports Hit All-Time High of USD 820 Billion in FY 2024-25
India’s exports have reached a new milestone, crossing USD 820 billion in FY 2024-25 — a 6% increase over the previous fiscal, according to the Commerce Ministry.
Key Highlights :
- Total exports (goods + services) rise from USD 778 billion in 2023-24 to USD 820+ billion in 2024-25.
- Growth achieved despite global headwinds, including geopolitical tensions and economic slowdowns in key markets.
- Merchandise exports (Apr–Feb): USD 395.63 billion (vs USD 395.38 billion YoY).
- Services exports (Apr–Feb): USD 354.90 billion (vs USD 311.05 billion YoY).
- Final FY 2024-25 trade figures to be released on April 15.
During a meeting with export promotion councils and industry bodies, Commerce and Industry Minister Piyush Goyal commended exporters for their resilience and reaffirmed the government’s support amid challenges like rising U.S. tariffs.
Exporters have urged continued proactive measures to sustain momentum in an evolving global trade environment.
India’s Growth Story Continues: ADB Projects 6.7% GDP Growth for FY26
India’s economy is set to grow by 6.7% in FY2025-26, driven by strong domestic demand, rising rural incomes, and easing inflation, according to the Asian Development Bank (ADB) April 2025 outlook. Growth is expected to edge up to 6.8% in FY27, supported by tax incentives, infrastructure investments, and robust services and agriculture sectors.
While the RBI has trimmed its growth forecast to 6.5% for the current year, it has also cut the repo rate to 6% to support the economy—its second rate cut this year.
Key growth drivers include :
- Boosted consumer confidence from lower inflation (4.3% projected for FY26)
- A rebound in manufacturing
- Expansion in health, education, and business services
- Government’s ₹100 billion push for urban infrastructure
Risks remain from global uncertainties, including new US tariffs and volatile commodity prices, but India’s stable macro fundamentals offer a strong buffer.
India’s Export Engine Keeps Humming in FY25
Logistics Companies globally are facing the crunch when it comes to IT Infrastructure Design and Deployment. The Management is mainly looking to solve their equations like.
Highlights in a flash
- Goods: ₹37.44 lakh cr (US $437.4 bn). Electronics stole the show, while rice, coffee, tobacco, and pharma kept the boxes moving.
- Services: ₹32.83 lakh cr (US $383.5 bn), jumping 12 % on surging IT‑BPM, cloud, and AI projects.
- Star performers:
- Electronics ₹3.3 lakh cr
- Pharma ₹2.61 lakh cr
- Rice ₹1.07 lakh cr
- Coffee & tobacco added flavour.
Trade pulse
Imports climbed to ₹78.34 lakh cr (US $915.2 bn), widening the merchandise deficit to ₹24.21 lakh cr. A hefty services surplus of ₹16.17 lakh cr cushioned the blow.
Top lanes
- Outbound favourites : USA, UK, Japan, UAE, France.
- Key suppliers : UAE, China, Thailand, USA, Russia
Logistics takeaway
Rising high‑value electronics and pharma cargo means tighter capacity and premium handling demand. Stay nimble on US and Japan lanes, and watch for policy tweaks aimed at trimming the goods deficit.
